How to accelerate carbon market development in India?

The people, i.e. the persons interested n Carbon Trading are not fully educated on the system, such as the project formation and the prior approval of the project. I have practically seen the ignorance of the management of a power sector on this vital market, specifically relating to energy sector. Secondly, there is a need of public participation which can be available ionly if the public also share a part of the benefit. This is specially concered to use of energy saving equipments/system

I believe that there should be an increased involvement from the banks to develop carbon market, and they must work in offering more and more carbon finance which will be instrumental in the carbon market development.

I believe that for India to cash in on the vast potential of the carbon market, a government strategy needs to be devised to derive the maximum benefits from it and address current market failures.The country also needs to build the capacity of its Public Sector Units (PSUs) to avail of carbon finance. This can be done by systematically screening massive infrastructure and urban development projects to see if they are eligible for such finance.

The growth of the carbon market will largely depend on the realisation that the market can assist India in achieving low carbon growth, and the consequent development of a strategy to cash in on the opportunities the market offers.

According to the United Nations’ Department of Economic and Social Affairs, developing countries would need 500-600 billion US dollars annually for measures of mitigation and adaptation. And that money should come from developed countries, which have a historical responsibility to the rest of the world for being the major contributors to climate change. According to the Clean Development Mechanism established in the Kyoto Treaty, industrialised countries committed to reduce their greenhouse gas (GhG) emissions can invest in projects that reduce emissions in developing countries as a means to compensate for cuts not made at home. The environmental group emphasises that most of the money for developing countries will not come in the form of public funds but from the monetising carbon credits accumulated through offsetting. E.g. a petrochemical company in India could reduce emissions in one of its plants by simply responding to normal business imperatives. Then, it sells the offsets to a Western company and, with the income, build another polluting plant. This scheme can, in some cases, lead to more pollution. ‘’It is a way to ensure the flows of money go to corporate entities". The carbon markets cannot really be trusted to reduce emissions.They will lead to financial corruption of the type that has caused the recent global economic crisis and they are just a means to create new markets for capital.

GLOBAL  COOLING  CER  10 BnT/Yr

INV  700 Bn$...RETURN  5400 Bn$/Yr...ROYALTY  30 Bn$/Yr